Gov't to cough up US$5 billion in judgement debt, if it cancels KGL-NLA deal-Razak Kojo Opoku reveals
Policy analyst and communications strategist Dr. Razak Kojo Opoku has issued a detailed public statement defending the partnership between the National Lottery Authority (NLA) and KGL Technology Limited, describing it as a “perfect and mutually beneficial arrangement” that has strengthened Ghana’s lottery industry.
In an extensive write-up titled “The Perfect NLA–KGL Deal: How the Driver (KGL) Became Very Important to the Car Owner (NLA),” Dr. Opoku responded to a recent investigative piece published by The Fourth Estate and shared by media executive Mr. Sulemana Briamah, which questioned the structure and transparency of the NLA–KGL relationship.
Dr. Opoku described the comparison drawn between the telecom business model and the lottery business model as “misleading and ill-informed,” arguing that the two operate under distinct industries and regulatory frameworks — the National Communications Authority (NCA) and the National Lottery Authority (NLA), respectively.
“Comparing the lottery business to the sale of telecom scratch cards shows a lack of understanding and expertise about how the lottery sector operates,” he asserted.
According to Dr. Opoku, KGL Technology Limited acts as an online Lotto Marketing Company (LMC) that pre-pays the NLA quarterly for digital lottery coupons in compliance with the National Lotto Act, 2006 (Act 722).
He emphasised that all monies received from KGL are paid directly into the official NLA Lotto Account, from which the Authority transfers balances to the Consolidated Fund as required by law.
He argued that the NLA’s decision not to pay commissions to KGL is legally sound, citing Sections 2(4) and 37(d) of Act 722.
Dr. Opoku noted that KGL has invested millions of dollars in developing a robust IT infrastructure to support NLA’s online lottery operations, making the company an indispensable partner.
“If the NLA were to pay KGL a 31% commission on gross revenue, it would be financially unsustainable.
The current model ensures NLA remains profitable and compliant with its mandate,” he explained.
Addressing claims that KGL controls 80–90% of NLA’s revenue, Dr. Opoku dismissed the figures as “fabrications not backed by any empirical data.”
He maintained that physical lottery operations through kiosks, banker-to-banker systems, and other private operators still dominate the industry.
He further credited KGL for significantly improving NLA’s revenue performance, stating that the company paid GHC 157.6 million to NLA in 2024 alone, compared to the GHC 182 million the Authority contributed to the Consolidated Fund over eight years (2013–2020).
“No other partnership has generated such value for the NLA within a single year,” Dr. Opoku emphasised.
Dr. Opoku also challenged the notion that NLA’s collaboration with KGL violates any laws, insisting that the partnership is fully compliant with Act 722 and L.I. 1948.
He argued that neither The Fourth Estate nor its sources had demonstrated any form of corruption, mismanagement, or breach of procurement regulations.
He warned that any attempt to terminate KGL’s license without due process could expose the State to a potential judgment debt of over US$5 billion, given the company’s contractual and infrastructural commitments.
“If the car owner (NLA) is satisfied with the performance of the driver (KGL), who are The Fourth Estate and Mr. Briamah to question that relationship?” he asked rhetorically.
Dr. Opoku concluded by reaffirming his support for the current NLA–KGL arrangement, describing it as a model for public–private partnership in Ghana’s gaming industry.
He urged media and civil society organisations to approach lottery-sector reporting with deeper research and professional objectivity.
“Clearly, attempts to create a bad image around the NLA–KGL deal keep backfiring,” he wrote.
“The facts show that this partnership is strengthening the NLA’s revenue base and ensuring responsible, transparent lottery operations.”
Source: Classfmonline.com/cecil Mensah
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